Citigroup increased its legal reserves after discussions with the U.K. Financial Conduct Authority led the company to expect to pay $300 million to $400 million to settle the regulator’s investigation into currency-benchmark manipulation, said a person briefed on the talks who asked not to be identified because the negotiations are private.

The increase in third-quarter legal costs, on top of the $951 million disclosed earlier this month, “resulted from rapidly evolving regulatory inquiries and investigations, including very recent communications with certain regulatory agencies related to previously disclosed matters,” the company said in a separate statement.